Speaking of the Dynamic Budget Adjustments I talk about in today's video, one thing I did was adjusted my cell phone service. I now save $2k per year on our 4 lines!! Get a great deal with Mint Mobile here: ► averagetoamazing.com/go/mintmobile/
We paid off our house is 2020. We had a 30 year laon and by paying one extra principal payment every month we ended up paying it off in 10 years. And saved a ton in interest. Our vehicles are paid off 100% debt free. I have a job that gets laid off from time to time but my wife unexpectedly lost her job and we were fine. And got to spend time together with out stressing about money. I love the freedom that comes with being debt free.
I paid off my home January 2023 and my truck this January . I have zero debt since then. My biggest problem is what to do with my money. Right now I’m saving money for another vehicle down the line cash, property taxes and a few hundred for maintenance expenses. I never thought I’d get there but it feels real good. My late father taught my brothers and me how to manage our money for a better future.
Paying off a mortgage: PRICELESS. We overpay our mortgage ever since our first payment was due. Knocked almost 7 years off the life of the mortgage so far in 3 years.
@@BobSharpe Yep, started out at $30, next COLA after that we added another $10, the 2025 COLA we will add another $10.. So in 8 months we will be overpaying a $125 a month principal by $50. Screw the people that say never pay off your home. I do have a question, with a mortgage, How many years by just making the reg payments do you actually see more being applied to the principal and actually see the life of your mortgage drop?
@@BobSharpe . I do have a question, Also why does the principal go higher in the early years per month , interest goes lower? It still adds up to the exact same amount though. and at what point do they come to the amount on closing docs? Playing see saw with the principal and interest part of the mortgage.
Paid mine off last year and do not regret doing that at all. The peace of mind, the freedom in my budget, it's really worth it to me. Sure, you could math out a mathematically more optional path, but I value the peace of mind far more than I do some extra bucks when I'm old. I still have a few decades to invest and I will have more than enough to live the kind of life that I want.
We want to retire early, in the next 5 years in our mid 40s. Therefore the goal for us is to pay off the mortgage in that time. The level of freedom it will give us to retire when we want is worth way more than the “math” that investing that extra money is better. Thanks for this video!
I am all for paying mortgage too. But I do realize we live in the USA, you still gotta pay tax, insurance and HOA(in some cases). So your home is never fully YOUR HOME 😎
My house is less than 20 years old. 3600 S.F. with six bedrooms. Nice to only pay property tax and insurance of. $350.00 a month. BTW, I pay it off only once a year. 11 months of no payments.
Here is a suggestion, invest in assets that generate either cash flow or dividends that meet or exceed the Property Taxes, Insurance and Utilities etc. then you will REALLY own your home. 😇
Pay off the primary residence before you retire or shortly after. Otherwise, keep that safe, low interest mortgage debt dialed up! Not paying off our mortgages any faster than we had to was a major factor in enabling us to hit FI before the age of 40. Also, the government has made it clear they are willing to print as much money as necessary to keep the economy and financial markets moving up. As far as risk goes, I would be more worried about keeping up with inflation than being stuck in a catastrophic and prolonged market collapse.
If the stock market crashes, the economy goes in the crapper... all things that CAN and HAVE happened. You will still have your house. Also, you might point out how much you saved on your mortgage. The sale price of the house, and the amount you ACTUALLY pay (with interest rates today) are not even in the same plane of existence. I for one, think you did it right. Sure, you could (maybe) have made more by investing the money, but nothing is guaranteed. Piece of mind is golden.
I still run into the maybe I should have put towards retirement more. But at the same time I don’t have a mortgage so now I can save more. I did lose pretty much all my 20s though.
It always sounds funny when people say they went to New York City to visit I live right there😂 I think I take for granted how close I live because I never go I’m in northern New Jersey like 15 miles outside of Manhattan
Having my mortgage paid off, the sense of freedom allowed me to be more assertive at work, pushing back on the BS. That resulted in a forced early retirement . But now I have the time to watch Bob Sharpe videos to become financially savvy. 👩🎓
Being mortgage-free gives one so much power and confidence at work that we don't have to ‘bow down’ to our boss to keep our job or worry about being laid off or fired.
@BobSharpe Nope! I look at mine occasionally. 😂 More so because my initial plans got torpedoed by work. I'm curious where I would have been financially if I could have kept it. It's bad... really bad... The best thing that happened to me during that time was that employment drama. Didn't feel like it at the time. But it was.
You are still paying property tax and insurance after paying off mortgage, I know you could not pay for insurance, but that would be a gamble. Curious what % of your $2000/month mortgage, or dollar amount, you average paying monthly on total property tax and insurance for the year? With property tax and insurance are you on average $500/month?
Yes I earmark around $500/month for that. But it sure beats the higher payment. I'm curious though, many people bring this up - is it just a matter of fact for the tax/insurance, or to say that I should've kept the mortgage because of the tax/insurance? Curious on your thoughts.
@@BobSharpe I was just curious how much you pay monthly as my goal is no mortgage as well, but I know my property tax is 6k+/yr...insane. Shouldn't have to pay taxes on something we own outright, that needs changed and is sickening thinking in 10 years combined I'm paying 60k+ on taxes on something I own when I get to the point of owning a home.
That's a great point - it would be amazing if we stopped taxes once we owned the house free and clear!!! Also thank you for clarifying the point about taxes, really helpful!
@@BobSharpe You no longer want fire department to come put out fires when you are done paying it off too? After all, it is paid off, no need to protect it anymore. No longer want the police to come investigate if someone breaks in? Potholes to at least be attempted to be filled in on the road in front of your house?
Just my 2 cents: I believe that investing in opportunities with a 10% return is more advantageous than paying off loans with interest rates below 5%. I also make sure to set aside a year's worth of living expenses as an emergency fund, which should be able to tide you through rainy days, before making any investments.
Mathematically yes, you are correct, even though there is more risk involved with investing. There is 0 risk paying off your mortgage early. Also to some people the feeling of having absolutely no debt is pretty priceless.
Really. Yes but taxes and insurance are a heck of a lot lower than a mortgage payment. I love the freedom from that high bill. Plus a tax lien is different than a mortgage foreclosure
Speaking of the Dynamic Budget Adjustments I talk about in today's video, one thing I did was adjusted my cell phone service. I now save $2k per year on our 4 lines!! Get a great deal with Mint Mobile here: ► averagetoamazing.com/go/mintmobile/
We paid off our house is 2020. We had a 30 year laon and by paying one extra principal payment every month we ended up paying it off in 10 years. And saved a ton in interest. Our vehicles are paid off 100% debt free. I have a job that gets laid off from time to time but my wife unexpectedly lost her job and we were fine. And got to spend time together with out stressing about money. I love the freedom that comes with being debt free.
Amen 😇
I paid off my home January 2023 and my truck this January . I have zero debt since then. My biggest problem is what to do with my money. Right now I’m saving money for another vehicle down the line cash, property taxes and a few hundred for maintenance expenses. I never thought I’d get there but it feels real good. My late father taught my brothers and me how to manage our money for a better future.
That's awesome that you have achieved that! Having good role models from an early age helps too- my Mum taught us well too!
Paying off a mortgage: PRICELESS. We overpay our mortgage ever since our first payment was due. Knocked almost 7 years off the life of the mortgage so far in 3 years.
That’s amazing!! Great job
@@BobSharpe Yep, started out at $30, next COLA after that we added another $10, the 2025 COLA we will add another $10.. So in 8 months we will be overpaying a $125 a month principal by $50. Screw the people that say never pay off your home.
I do have a question, with a mortgage, How many years by just making the reg payments do you actually see more being applied to the principal and actually see the life of your mortgage drop?
@@BobSharpe . I do have a question, Also why does the principal go higher in the early years per month , interest goes lower? It still adds up to the exact same amount though. and at what point do they come to the amount on closing docs? Playing see saw with the principal and interest part of the mortgage.
That’s what’s up 🤩
Morgage free from September last year! We also went with the family to NEW York for Christmas and went to see the tree 😂
Congratulations 🎉 and wow we could’ve both been checking out the tree around the same time - living that mortgage free lifestyle! 😁
@@BobSharpe it was a lot of people there, crazy! New York still fan to visit, lots of stuff to see and explore
So many smart people here ... I wouldn't have came up with ALL these possible negatives on my own ... thanks Bob for the video
Paid mine off last year and do not regret doing that at all. The peace of mind, the freedom in my budget, it's really worth it to me. Sure, you could math out a mathematically more optional path, but I value the peace of mind far more than I do some extra bucks when I'm old. I still have a few decades to invest and I will have more than enough to live the kind of life that I want.
You got to made Bob!!!!
We want to retire early, in the next 5 years in our mid 40s. Therefore the goal for us is to pay off the mortgage in that time. The level of freedom it will give us to retire when we want is worth way more than the “math” that investing that extra money is better. Thanks for this video!
Thanks for commenting!! That financial bliss is the best feeling ever!
I am all for paying mortgage too. But I do realize we live in the USA, you still gotta pay tax, insurance and HOA(in some cases). So your home is never fully YOUR HOME 😎
My house is less than 20 years old. 3600 S.F. with six bedrooms. Nice to only pay property tax and insurance of. $350.00 a month. BTW, I pay it off only once a year. 11 months of no payments.
So... instead of paying 2k to 3k once a YEAR.... might as well give up and pay 2k to 3k once a MONTH? Hmm. Makes sense... 🙄
Same here in NZ- $120 a week for local council tax!- Is that not the case everywhere?
Here is a suggestion, invest in assets that generate either cash flow or dividends that meet or exceed the Property Taxes, Insurance and Utilities etc. then you will REALLY own your home. 😇
Pay off the primary residence before you retire or shortly after. Otherwise, keep that safe, low interest mortgage debt dialed up!
Not paying off our mortgages any faster than we had to was a major factor in enabling us to hit FI before the age of 40.
Also, the government has made it clear they are willing to print as much money as necessary to keep the economy and financial markets moving up. As far as risk goes, I would be more worried about keeping up with inflation than being stuck in a catastrophic and prolonged market collapse.
Good point - the rental home isn’t something I’d rush to pay off especially if someone scored a great rate.
If the stock market crashes, the economy goes in the crapper... all things that CAN and HAVE happened. You will still have your house. Also, you might point out how much you saved on your mortgage. The sale price of the house, and the amount you ACTUALLY pay (with interest rates today) are not even in the same plane of existence.
I for one, think you did it right. Sure, you could (maybe) have made more by investing the money, but nothing is guaranteed. Piece of mind is golden.
I still run into the maybe I should have put towards retirement more. But at the same time I don’t have a mortgage so now I can save more. I did lose pretty much all my 20s though.
It always sounds funny when people say they went to New York City to visit I live right there😂 I think I take for granted how close I live because I never go I’m in northern New Jersey like 15 miles outside of Manhattan
Haha that's awesome!! Manhattan is so much fun
Having my mortgage paid off, the sense of freedom allowed me to be more assertive at work, pushing back on the BS. That resulted in a forced early retirement . But now I have the time to watch Bob Sharpe videos to become financially savvy. 👩🎓
Love that!! 😁 and congrats on your freedom!!!
Being mortgage-free gives one so much power and confidence at work that we don't have to ‘bow down’ to our boss to keep our job or worry about being laid off or fired.
@@methemonkeyking exactly! And then soon we are truly "free". 😏
8:58 I’m betting these keyboard warriors have a mortgage and/or no money to their name… everyone has an opinion, just not always a good one.
Your starter home now has a market value of $728,000.
Haha I wish. Is it weird I still look it up on Zillow to see how it’s doing ? 😆
@BobSharpe
Nope! I look at mine occasionally. 😂
More so because my initial plans got torpedoed by work. I'm curious where I would have been financially if I could have kept it.
It's bad... really bad... The best thing that happened to me during that time was that employment drama. Didn't feel like it at the time. But it was.
You are still paying property tax and insurance after paying off mortgage, I know you could not pay for insurance, but that would be a gamble. Curious what % of your $2000/month mortgage, or dollar amount, you average paying monthly on total property tax and insurance for the year? With property tax and insurance are you on average $500/month?
Yes I earmark around $500/month for that. But it sure beats the higher payment. I'm curious though, many people bring this up - is it just a matter of fact for the tax/insurance, or to say that I should've kept the mortgage because of the tax/insurance? Curious on your thoughts.
@@BobSharpe I was just curious how much you pay monthly as my goal is no mortgage as well, but I know my property tax is 6k+/yr...insane. Shouldn't have to pay taxes on something we own outright, that needs changed and is sickening thinking in 10 years combined I'm paying 60k+ on taxes on something I own when I get to the point of owning a home.
That's a great point - it would be amazing if we stopped taxes once we owned the house free and clear!!! Also thank you for clarifying the point about taxes, really helpful!
@@BobSharpe You no longer want fire department to come put out fires when you are done paying it off too? After all, it is paid off, no need to protect it anymore. No longer want the police to come investigate if someone breaks in? Potholes to at least be attempted to be filled in on the road in front of your house?
My mortgage is 1187 month, tax = $330 month
Not only financial market crash but we’ve had a global pandemic! Plan for the worst is always the safe option.
On my way to the debt freedom party. Pedal to the metal.
That's awesome, congratulations!!!
Bob, how old are you and what is your current net worth?
I don’t share my specific age but let’s just say 40s. And over $1.1m
@@BobSharpe I'm 46. Over $1.1m also :)
Loving your channel by the way.
That’s amazing!! And I appreciate it much - more videos coming!
Bob is old ... not compared to me butt old LoL
Funny hesitant about sharing age but NW no prob. I'd be the opposite.
Dropping my insurance after I'm mortgage free
Just my 2 cents: I believe that investing in opportunities with a 10% return is more advantageous than paying off loans with interest rates below 5%. I also make sure to set aside a year's worth of living expenses as an emergency fund, which should be able to tide you through rainy days, before making any investments.
Mathematically yes, you are correct, even though there is more risk involved with investing. There is 0 risk paying off your mortgage early. Also to some people the feeling of having absolutely no debt is pretty priceless.
Only 2k a month?! My rent is higher than that!!!
Really. You never own a house. Taxes every year, insurance. Forever. Do you ever own it?
Really. Yes but taxes and insurance are a heck of a lot lower than a mortgage payment. I love the freedom from that high bill. Plus a tax lien is different than a mortgage foreclosure
Invest in assets that can pay for those items and you will really own your home. More reason to be debt free as fast as possible. 😇